Members login
Currencies Update: Investors target the dollar after disappointing data from Europe
Written by article default Thursday, 23 September 2010 20:31
The dollar extended gains against majors as indicated by the US Dollar index after manufacturing and services data from Germany and the Euro-Zone came sluggish and below the prior readings.Slowdown in economic activities is clear to investors, where further bearishness is projected during the upcoming period, a day after falling to a five-month low against the Euro, the dollar rose on the US Dollar index daily scale to 80.02, compared with the opening levels of 79.81 where the index traded at the highest level at 80.05 and the lowest at 79.71.
The European shared currency fell on the daily scale from the opening levels of 1.3404 to trade at a low of 1.3333 while setting on 1.3339.
The EURUSD pair could achieve further bullishness over intraday basis, where any trading above 1.3230 would maintain chances of an upside trend, targeting 1.3360 then 1.3400.
The manufacturing data from the Euro-Zone fell in September advanced reading to 53.6, from the previous 55.1 while the services sector’s activities dropped to 53.8 from 56.2.
All the factors that drove the British economy over the first half of this year is seemingly slowing down. The Royal pound fell against the dollar to 1.5619, compared with the opening levels of 1.5663 after the BBA loan fell in august to 31767, from the previous revised 34219.
The pair is expected to continue trading among the support levels at 1.5600 and the resistance at 1.5685.
As for the Japanese Yen, the currency was affected by the unorthodox method adopted by the BOJ to depreciate the Yen, but the yen returned to extend its gains against the dollar over the past three-trading session.
Today’s trading is calm, where the pair is trading little changed at 84.48, setting a high of 84.67 and a low of 84.38.
A bullish trend has returned targeting 84.90 and 85.20, where the expected scenario remains intact as far as trading remains above 84.00.
As for other currencies, the Swiss France advanced as investors sees the currency as a safe have to invest, the Swiss France traded higher against most of its major counterparts.
The USDCHF pair traded higher, reaching 0.9876, compared with the opening levels of 0.9860 while setting a high of 0.9898.
A bearish intraday direction is projected, targeting 0.9835 and 0.9800, noting that the pair must sustain trading below 1.0020 to achieve those targets.